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crude oil prices climbed on Monday after producer club OPEC and some non-affiliated suppliers last Friday agreed a supply cut of 1.2 million barrels per day (bpd) from January.
Despite this, the outlook for next year remains muted on the back of an economic slowdown.
International Brent crude oil futures were at $61.96 per barrel at 0451 GMT, up 29 cents, or 0.5 percent, from their last close.
Prices surged on Friday after the Organisation of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including heavyweight Russia announced they would cut oil supply by 1.2 million bpd, with an 800,000 bpd reduction planned by OPEC-members and 400,000 bpd by countries not affiliated with the group.
U.S. West Texas Intermediate (WTI) crude futures were weaker, however, dropping 11 cents from their last settlement to $52.50 per barrel, weighed by surging U.S. output as the booming American oil industry is not taking part in the announced cuts.
The OPEC-led supply curbs will be made from January, measured against October 2018 output levels.
“Our key conclusion is that oil prices will be well supported around the $70 per barrel level for 2019,” analysts at Bernstein Energy said on Monday.
Despite the cuts, that was still a price forecast reduction of $6 per barrel as Bernstein reduced its crude oil demand forecast from 1.5 million bpd previously to 1.3 million bpd for 2019.
U.S. bank Morgan Stanley (NYSE:MS) said the cut was “likely sufficient to balance the market in 1H19 and prevent inventories from
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